Key insights and market outlook
The Indonesian government has decided to increase the LPG quota for the 2025/2026 New Year period to ensure stable supply. Minister of Energy and Mineral Resources Bahlil Lahadalia and Finance Minister Purbaya Yudhi Sadewa discussed the matter in a meeting 1
The Indonesian government has announced plans to increase the LPG (Liquefied Petroleum Gas) quota for the 2025/2026 New Year period. This decision was made during a meeting between Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia and Finance Minister Purbaya Yudhi Sadewa 1
The current LPG quota for 3 kg cylinders in 2025 is set at 8.17 million metric tons, which is slightly lower than the 2024 realization by 0.06 million metric tons. However, the projected demand for 2025 is 8.5 million metric tons, creating a potential shortfall of approximately 0.37 million metric tons or 370,000 metric tons 2
Despite the increase in LPG quota, the government has stated that there will be no additional subsidy allocation. The government remains committed to maintaining controlled and targeted subsidy distribution for LPG 3 kg cylinders. Finance Minister Purbaya emphasized that every rupiah of state money should bring tangible benefits to those who need it most 1
LPG Quota Increase for 2025/2026
Government Meeting on Energy Subsidy